Suggestions to solve cab crunch include ditching all surcharges

Ditch all surcharges, impose all-day levies at far flung places or introduce even more surcharges to solve the longstanding problem of disappearing taxis just before the peak period.

These are some of the solutions that experts, industry players and taxi drivers have suggested, after the issue resurfaced recently, reported The Straits Times.

Although surcharges were meant to better match supply and demand, many, like cabby Colin Wong, have called for peak-hour and location levies to be axed. Their rationale? Cabbies already know where and when passengers need cabs most, so there is no need to incentivise them.

Removing all surcharges will placate commuters who are unhappy about the current fare structure, which they say is confusing.

Senior Minister of State for Transport Josephine Teo said last November that the Government is looking at simplifying the current taxi fare structure to make it less confusing for commuters. But earlier this year, she said this might lead to higher taxi rentals and fares - a possible result of covering the shortfall that drivers face when the surcharges are removed, experts explained.

When contacted, the Transport Ministry said it is still "studying this carefully to ensure that taxi commuters and drivers are not worse off if any changes are made".